Why the Secrets of the Natural World Are Used in the World of Investing | An Investment Diary Aiming for 1 Billion Yen in Assets

1, 1, 2, 3, 5, 8, 13, 21...

At first glance, it looks like an ordinary sequence of numbers.

However, this is a mysterious law used in everything from the number of flower petals and sunflower seeds to stock chart analysis.

Its name is the Fibonacci sequence.

This sequence, which became widely known over 800 years ago, continues to influence not only the natural world but also art, architecture, and financial markets around the globe.

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The Mathematician Who Spread It to Europe

The person who widely introduced the Fibonacci sequence to Europe was the Italian mathematician who was active between the 12th and 13th centuries, **Leonardo Fibonacci (real name: Leonardo of Pisa)**.

In his book "Liber Abaci" (The Book of Calculation) published in 1202, he introduced the famous **"rabbit problem."**

"There is one pair of rabbits. They produce one pair of offspring every month, and the offspring begin breeding from the second month. How many pairs will there be in one year?"

Calculating this problem results in the sequence:

1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144...

The numbers follow a pattern where

adding the previous two numbers results in the next number—this is the Fibonacci sequence.

Despite such a simple rule, it is often called the "most beautiful sequence in the world" because similar patterns are found in various places in nature.

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Was the True Discoverer an Indian Scholar?

In fact, Fibonacci was not the first to think of this sequence.

Centuries before Fibonacci wrote "Liber Abaci," ancient Indian scholars already knew the properties of this sequence.

It is believed that Pingala and Hemachandra arrived at this sequence while studying not rabbits, but **the rhythm of poetry (syllable length).**

In other words, rather than being the "discoverer," Fibonacci was the person who spread this sequence to Europe.

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Why Is It Often Found in the Natural World?

The Fibonacci sequence is also surprisingly common in the natural world.

Examples include:

* The number of flower petals (3, 5, 8, 13, etc., are overwhelmingly common)

* The arrangement of sunflower seeds (forming beautiful spirals)

* The patterns on pinecones

Plants have evolved to receive sunlight efficiently and arrange seeds in limited spaces with as little gap as possible.

Because of this,

it is known that many arrangements have a deep relationship with the Fibonacci sequence and the golden ratio.—

Relationship with the Golden Ratio

When you divide adjacent numbers in the Fibonacci sequence:

2 ÷ 1 = 2.0
3 ÷ 2 = 1.5
5 ÷ 3 = 1.666...
8 ÷ 5 = 1.6
13 ÷ 8 = 1.625

As the numbers get larger, the value approaches approximately 1:1.618 (the golden ratio).This ratio is the golden ratio, which has long been considered the "beautiful ratio."

The golden ratio is often discussed in relation to:

* The Parthenon

* The famous painting "Mona Lisa"
* Design and architecture
Furthermore, if you represent the Fibonacci sequence with squares and draw arcs within them, a beautiful



Fibonacci spiralappears.

This shape is widely known as a mysterious connection to the natural world, as it brings to mind the shells of nautiluses, the vortex of typhoons, and spiral galaxies.

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Used in the World of Investing Too

And this sequence is not just about the natural world.

In fact, investors around the world also use the Fibonacci sequence.

A prime example is

Fibonacci retracement.



"Retracement" means to "go back" or "pull back."

Market prices rarely rise in a straight line; they move in waves, "rising, falling slightly, and rising again."

This temporary decline is called a "pullback" or "dip."

Fibonacci retracement is a chart analysis method used to find where prices are likely to rebound.

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How to Actually Use It

For example, suppose a stock price rises from 100 yen to 200 yen.

When you display Fibonacci retracement on the chart, lines are automatically shown at:

* 38.2% ... approx. 161.8 yen
* 50.0% ... 150 yen
* 61.8% ... approx. 138.2 yen

Investors watch these price ranges as a guide, thinking, "It might rebound around here."

The actual process is as follows:

1. Find the notable low and high points on the chart.

2. Display the Fibonacci retracement.

3. Wait for the stock price to fall.
4. Consider buying if you confirm a rebound near 38.2% or 61.8%.
Of course, it does not always rebound at these lines.
They are merely a guide indicating price ranges that many investors are watching.

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Why Is It Said to Work?

The reason is very simple.

It is because investors around the world are aware of these lines.

AI-driven automated trading and professional traders focus on the 61.8% level, and many other investors also think, "It might rebound around here," and place buy orders.

As a result, buying pressure actually gathers, and there are many instances where the market rebounds.

In other words, Fibonacci retracement is not magic that predicts the future.

It is a map that visualizes the "psychological turning points" that investors worldwide are conscious of.

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Conclusion

A mysterious numerical law that appears time and again in the natural world. That law not only explains the mechanisms of plant growth but also influences art and architecture, and continues to be utilized in financial markets around the world. The next time you look at a sunflower or a stock chart, I hope you will take a moment to think about the 'common rules between nature and humanity' hidden behind them.

Perhaps the world is connected by the same laws more than we realize.

💡 This is a recommended book where you can enjoy the history of Fibonacci and the excitement of mathematics along with beautiful illustrations. It will captivate both adults and children!

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